Question
Nora's Noodles plans a weekend discount on udon bowls, reducing the price from $9.00 to $7.50. Promotion costs $1000. Nora expects udon bowl sales to
Nora's Noodles plans a weekend discount on udon bowls, reducing the price from $9.00 to $7.50. Promotion costs $1000. Nora expects udon bowl sales to increase by 40%, with a 15% decline in soba bowl sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Udon Bowls | $9.00 | $4.50 | 300 |
Soba Bowls | $8.00 | $4.00 | 400 |
Requirement: Determine the impact on sales and profitability.
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Managerial Accounting
Authors: John Wild, Ken Shaw
5th edition
978-0078025600
